Intro To Business: Chapter 1

economic system where the economic resources are owned by individuals rather than government

utility is added when a business changes the form of a good or service to make it more useful.

The value of the next best option that was not selected

All the tools, equipment, and machinery used to produce goods or provide services

Actions taken by two or more businesses attempting to attract the same customers

option after evaluating available information&weighing the costs&benefits of alternatives

the characteristics of a product that satisfy wants and needs

Something a person must have to survive.

Organized way in which a nation chooses to use its resources to create goods and services

Level of material comfort measures by the goods, services, and luxuries available

price of product determined by relationship of supply of a product & demand for the product

price of a product determined by relationship of supply of product and the demand for a product

A science that examines how goods and services are produced, sold, and used

anywhere buyers and sellers meet to buy and sell goods and services

Work performed by people in businesses, also called human resource

economy is one in which economic decisions are based on a society’s values, culture, & customs

Products businesses use to produce other goods

When an item is given up in order to gain something else.

economy is one in which the government makes all the economic decisions for its citizens.

Action or task that is performed, usually for a fee.

Customers who purchase goods and services for their own use are called

Money earned in exchange for work

economy is one in which individuals are free to make their own economic decisions.

Anything that can be bought or sold

The customer of a service business is often called

Willingness and ability to start a new business

Something that a person desires but can live without

difference between income earned & expenses incurred by business during specific period of time

When demand is higher than the available resources

Individual or group who buys products.

economy in which both the government and individuals make decisions about economic resources

is the term for all activities involved in developing and exchanging products.